I.1 Profile Ã¯Â¿Â½
Vodafone is the world's largest mobile telecommunication network company, based on revenue, and has a market value of about ÃÂ£71.2 billion (November 2009). It currently has operations in 31 countries and partner networks in a further 40 countries. Vodafone has subsidiaries in North and South America, Asia, Oceania and Africa. Based on subscribers, it is the world's second largest mobile phone operator behind China Mobile, with over 427 million subscribers in 31 markets across 5 continents as of 2009. In the UK, its home ground, Vodafone has badly underperformed in the last few years due to brisk change in administration. It has slipped from first to third largest telecom operator generating a revenue of ÃÂ£4.9 billion from its 18.7 million customers in 2008-09. As of March 31, 2009, the company employs more than 79,000 people worldwide. Vodafone's shares are listed on the London Stock Exchange, (LSE: VOD) where it is a constituent of the FTSE 100 index.
I.2 Industry and Position Ã¯Â¿Â½
Notwithstanding a challenging economic background and rising unemployment, the fundamentals of the telecommunications industry continue to be attractive. In this environment, the sector leaders, such as Vodafone, continue to be able to innovate and deliver new products and services as well as generate strong cash flows. Although revenue from traditional services of voice and messaging in mature markets is growing more slowly due to competitive and regulatory pressures, there remains a significant growth opportunity in mobile data. Within the Vodafone footprint, emerging markets, such as India, continue to exhibit the potential for strong growth due to low mobile penetration rates of around 38% on average, compared to over 120% in Europe, which together with higher GDP growth prospects, provide a significant customer growth opportunity.
Vodafone is well positioned in the telecommunications...